SunSirs: The Phosphoric Acid Market Fluctuated and Sorted out in June

Price trend

According to the Commodity Market Analysis System of SunSirs, the reference average price of 85% thermal-process phosphoric acid in China on June 1st was 6,220 RMB/ton. On June 30th, the reference average price of 85% thermal-process phosphoric acid in China was 6,300 RMB/ton. This month, the domestic thermal-process phosphoric acid price was increased by 1.29%.

According to the Commodity Market Analysis System of SunSirs, the reference average price of 85% wet-process phosphoric acid in China was 5,983 RMB/ton on June 1st, and 6,200 RMB/ton on June 30th. This month, the domestic wet-process phosphoric acid price was increased by 3.62%.

Analysis review

This month, the price of phosphoric acid in the market fluctuated up and down. In early June, the price of raw material phosphorus yellow increased, cost support strengthened, and the increase in raw material prices boosted the upward trend of the phosphoric acid market. In mid June, the price of raw material phosphorus yellow decreased, and cost support weakened. Downstream stocking willingness was not strong, market trading was poor, and transactions were relatively low. The market price of phosphoric acid was lowered. In late June, the raw material phosphorus yellow was operating steadily and steadily, with acceptable cost support. Phosphoric acid companies mainly supported prices, and prices fluctuated and increased. As of June 30, the ex factory quotation of 85% thermal-process phosphoric acid in Sichuan was about 6,200 RMB/ton, that of 85% thermal-process phosphoric acid in Yunnan was about 6,300 RMB/ton, and that of 85% hermal-process phosphoric acid in Hubei was about 6,200 RMB/ton. The domestic market quotation for 85% wet-process phosphoric acid was around 6,000-6,700 RMB/ton.

The raw material phosphate rock market showed a weak decline overall in the domestic phosphate rock market this month. Starting from the beginning of the month, due to the weak downstream demand for phosphate rock, the overall shipment of phosphate rock had slowed down, and the mentality of the industry was average. Some mining companies started to lower the price of phosphate rock, with a decrease of around 20-30 RMB/ton. Due to the impact of shipments, the new order of some mining enterprises was average, so there was some pressure on the supply side, and the support provided by the supply side to the market was gradually loosening. In the later stages, the phosphate rock market continued to move downward in the supply-demand game, with a 30% grade phosphate rock price reduction of around 40-60/ton.

Market situation of raw material phosphorus yellow. In June, the market price of phosphorus yellow first rose and then fell, with the overall increase being the main trend. In the early part of this month, manufacturers mainly delivered preliminary orders, but there was not much inventory on the market and they were reluctant to sell at low prices, resulting in an overall increase in the market situation. In the middle of the month, the overall market trading situation of phosphorus yellow was light, and the start of construction in the phosphorus yellow market was still at a low level. Some enterprises postponed producing, and market transactions were limited, with prices slightly falling. In late June, many phosphorus yellow enterprises in production reduced their production load, with stable prices as the main focus. Downstream purchases were made as needed, and they purchased as needed. As of June 30, the quotation in Sichuan region wass around 22,800-23,000 RMB/ton, and the actual transaction was subject to negotiation.

Market outlook

Phosphoric acid analysts from SunSirs believe that the market for raw material phosphorus yellow was stable recently, and the supply of goods was tight, leading to an increase in market inquiries. The phosphoric acid market was watching the trend of raw materials, and the market was operating at a high price. Downstream demand was weak, and market transactions were relatively low. It is expected that the price of phosphoric acid will be stable and consolidated in the short term.

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